A Winnersh mum is among families devastated by the loss of a potential lifeline from a charity forced to cut back its services because of funds tied up in Iceland banks.

Beverley Campbell is among families who will no longer be able to turn to Naomi House children’s hospice if an emergency situation means she cannot care for her 16-year-old daughter Bonnie, who has physical and learning disabilities.

The charity, which costs £2.5 million to run each year, has £5.7 million frozen in three Icelandic banks, which collapsed in October.

Although negotiations are ongoing to get the money back, the charity has been forced to withdraw its Hospice at Home service because of a lack of funds.

Mrs Campbell, of Dunstans Drive, Winnersh, would have been eligible for the service when it rolled out across the area following a successful trial in Southampton, Winchester and Basingstoke.

She said: “We have been using Naomi Hospice for four years now. We use it for planned respite, but it is times when you have an emergency or in a crisis you need that ‘at home’ support.

“If anything were to happen to me or I could not care for Bonnie, I would not have anyone to step in.

“She has very complex needs and it is important that we have somebody coming to look after her who knows about her medications and needs.”

A spokeswoman for the hospice said it had planned to extend its at home emergency respite care soon, however has suspended it while it appeals for return of the funds in Iceland banks.

She said: “It is a devastating blow for families who often have no alternative way of coping in a crisis.”

Mrs Campbell, who looks after her daughter full-time and also offers respite care, said parents often find it difficult to accept respite help and care for children with disabilities.

However she said it is vital the option is there, because it provides a lifeline for people who sometimes need to take time out from caring for loved ones.

Professor Khalid Aziz, chairman of Naomi House, said: “As a result of a situation not of our making we cannot deliver a vital service that we usually provide [in the trial area].

“We simply cannot accept that the Government will let this situation continue and we urge that they give assurances that our funds will be returned immediately.”

Naomi House offers a hospice service for 220 families with children with life-limiting conditions in Berkshire, Dorset, Hampshire Isle of Wight, Wiltshire and fringes of West Sussex and Surrey.